Honda Cars India has seen outstanding sales in the past month. Domestic sales grew by 12 percent to 7,902 units while exports clocked 3,749 units in December 2023. The company has just launched the new Elevate SUV has met with outstanding success in the country and is set to boost sales even further in the months ahead.In a remarkable conclusion to the year 2023, Honda, a renowned player in the automotive industry, has reported a substantial surge in car sales for the month of December.
Honda's December 2023 Car Sales Overview
Honda domestic sales stood at 7,902 units in December 2023, an 11.89 percent YoY growth over 7,062 units sold in December 2022. This was an 840 unit volume growth. MoM sales on the other hand dipped 9.48 percent from 8,730 units sold in November 2023.
Exports on the other hand grew by 170 percent to 3,749 units in December 2023 from 1,388 units sold in shipped in December 2022 a difference of 2,361 units. This took total sales (domestic + exports) to 11,651 units in December 2023, a growth of 37.88 percent over 8,450 units sold in December 2022. This was the company’s highest ever monthly export volume.
- Diverse Model Portfolio: Honda's diverse model portfolio has played a crucial role in the overall sales surge.
- Market-Specific Strategies: Honda's success is indicative of its ability to implement market-specific strategies. This adaptability contributes to sustained success in diverse markets.
- Year-End Promotions and Incentives: The month of December often witnesses heightened consumer activity due to year-end promotions, discounts, and incentives. Honda's strategic utilization of these marketing tools has likely attracted a larger consumer base, prompting increased showroom footfall and, subsequently, higher sales figures.
The Elevate Factor
A standout contributor to Honda's exceptional December sales figures is the Elevate model. The relatively new Honda Elevate was launched in September 2023. It is priced from Rs 11-16 lakh (ex-showroom) and competes with the Hyundai Creta, Kia Seltos, Maruti Suzuki Grand Vitara, and Toyota Urban Cruiser Hyryder in the 4.3 meter long SUV segment. Well received by buyers in India, the Elevate is offered in a range of colour options and gets exterior features such as LED head and tail lamps, keyless entry, push button start, steering mounted audio controls and electrically adjustable ORVMs. These features are offered from the base SV trim onwards. The higher variants get larger touchscreen infotainment systems at 8” on the V trim going up to 10.25 inch on the VX variant onwards. Safety is via the Honda Sensing ADAS suite in keeping with competition. The ADAS suite comprises camera-based ADAS features among which are lane-keep assist, adaptive cruise control and lane-departure warning.
- Catering to SUV Demand: The global automotive market has witnessed a growing demand for SUVs, and the Elevate aligns perfectly with this trend.
- Positive Consumer Reception: Positive reviews and consumer feedback have played a crucial role in elevating the Elevate's status in the market.
Strategic Marketing and Branding
Honda's success in December 2023 can be attributed to effective marketing and branding strategies that have heightened consumer awareness and engagement.
- Digital Marketing Initiatives: Honda's digital marketing initiatives have likely played a role in reaching a broader audience.
- Consistent Brand Messaging: Consistency in brand messaging, emphasizing key brand values and product attributes, contributes to a coherent and compelling narrative.
Global and Regional Sales Dynamics
Honda's success in December extends beyond a specific region, reflecting a combination of global and regional sales dynamics.
- Global Market Resilience: Honda's ability to thrive in various global markets indicates the resilience of its business model. ?
- Regional Tailoring of Offerings: The regional tailoring of Honda's car offerings ensures that each market receives models suited to local tastes and needs.
- Local Manufacturing and Supply Chain Efficiency: Efficiency in local manufacturing and supply chain management is critical for meeting market demands.
Implications for the Automotive Landscape
Honda's stellar sales performance in December 2023 holds broader implications for the automotive landscape.
- SUV Segment Growth: The success of the Elevate model underscores the growth potential in the SUV segment.
- Digital Transformation in Marketing: As consumers increasingly engage online, manufacturers must adapt their marketing strategies to meet customers where they are – on digital platforms.
Supply Chain Resilience: The ongoing challenges in global supply chains require proactive measures to ensure a consistent supply of components for manufacturing.
Sustainable Growth Strategies: Sustaining this level of success requires a strategic approach to growth.
Both vehicles are likely to be sold via company’s Nexa lineup. Maruti’s Toyota Innova Hycross counterpart, Invicto, will still be the flagship vehicle that the company has to offer. In November 2023, Maruti Suzuki had around 40% market share in mainstream vehicles and 20% market share in SUV segment. To achieve 50% total market share, Maruti Suzuki intends to increase their SUV share by up to 33% by identifying gaps within SUV segments and targeting niches.